Moody's slashes India’s growth projection to 9.3% from earlier estimate of 13.7%

Spread of the COVID-19 virus as well as the rate of vaccinations will have a direct impact on economic outcomes

Moody’s Investors Service sharply scaled down this year’s growth projection for India to 9.3% on Tuesday from its earlier estimate of 13.7%, citing “the negative impact of the second wave”, and warned that the spread of the COVID-19 virus as well as the rate of vaccinations will have a direct impact on economic outcomes. “The credit profile of India is increasingly constrained by obstacles to economic growth, a high debt burden and weak financial system. Policymaking institutions have struggled to tackle and contain these risks, exacerbated by the coronavirus pandemic,” the global rating agency said in a credit opinion note. “A shortage of vaccines and logistical difficulties in reaching a large rural population (about two-thirds of the population) complicate the vaccine rollout,” it pointed out, noting that only around 10% of the country's population had received at least one dose of the vaccine by early May.